IBERIABANK Corporation Reports Record Operating Results

27 Jan, 2016, 18:39 ET from IBERIABANK Corporation

LAFAYETTE, La., Jan. 27, 2016 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 128-year-old IBERIABANK (www.iberiabank.com), reported operating results for the fourth quarter ended December 31, 2015.  For the quarter, the Company reported income available to common shareholders of $44.4 million, or $1.08 fully diluted earnings per common share ("EPS").  In the fourth quarter of 2015, the Company incurred non-operating expenses net of non-operating revenue and income taxes equal to $1.0 million, or $0.03 per common share.  Excluding non-operating items, operating EPS in the fourth quarter of 2015 was $1.11 per common share on a non-GAAP operating basis (refer to press release supplemental table.)  The $1.11 operating EPS results in the fourth quarter of 2015 were within management's guidance range, equated to a 4% improvement on a linked quarter basis, and was a record level of quarterly operating EPS for the Company.

Daryl G. Byrd, President and Chief Executive Officer, commented, "This was a very busy and productive quarter for our Company.  Our net interest margin expanded considerably in the final quarter of the year, though much of the positive impact of the recent increase in short-term interest rates will occur in the first quarter of 2016.  We increased operating revenues and reduced operating expenses, resulting in our lowest operating efficiency ratio in at least 27 quarters.  I am pleased with the progress we achieved toward our targeted efficiency ratio of 60% and our improved bottom-line profitability. We continue to execute on our revenue and efficiency improvement initiatives. Overall, I'm very pleased with the progress we have achieved this quarter and our sustained focus."

Byrd continued, "For the full year of 2015, we achieved record operating EPS of $4.18, up 12% compared to 2014.  In addition, in 2015 we attained record levels of annual total revenues, loan originations, mortgage production and sales, title insurance income, retail brokerage income, treasury management income, and many other measures.  I'm very pleased with our achievements this past year, our continued client growth, strength in asset quality and capital, and enhanced operating leverage, efficiency, and profitability.  We anticipate continued progress in 2016 toward attaining our strategic goals, despite the economic and commodity price headwinds we face."

Byrd continued, "The unprecedented rapid and sustained decline in commodity prices has unsettled the financial condition of those individuals, businesses, and communities whose financial well-being are tied to those commodities.  While the vast majority of our franchise continues to have no exposure to these concerns, we remain vigilant in our actions to mitigate the risks in our current environment.  Our Company's historical focus on sound client selection, conservative credit underwriting, and proactive portfolio management, and market and business diversification continue to serve our Company and shareholders well.  Our strategic decisions to expand into larger markets across the southeast allow us to continue to drive growth and profitability to offset our risk-off positions in impacted energy segments of business."

Highlights for the fourth quarter of 2015 and at December 31, 2015:

  • Energy-related loans declined $39 million, or 5%, between September 30, 2015 and December 31, 2015, and equated to 4.8% of total loans at December 31, 2015. At December 31, 2015, $8.4 million in energy loans were on non-accrual status (1.2% of total energy loans). The Company had approximately $27 million in aggregate reserves for energy-related loans and unfunded commitments, an increase of $8 million, or 41%, since September 30, 2015. At year-end, energy-related reserves equated to 3.9% of energy loans outstanding.
  • The Company's net interest margin increased 14 basis points on a linked quarter basis to 3.64%, which was well above management's expectations. The Company's cash margin improved seven basis points on a linked quarter basis.
  • On a linked quarter basis, the Company's operating revenues increased $3.1 million, or 1%, while its operating expenses decreased $6.4 million, or 5%. The tangible efficiency ratio improved from 64.8% to 61.1% on a linked quarter basis.
  • During 2015, the Company closed or consolidated 11 bank branches, acquired 36 branches, and opened five branches. An additional 19 branches are scheduled to be closed or consolidated in the first quarter of 2016, resulting in projected annual net run-rate savings of at least $1 million per quarter starting in the second quarter of 2016. The Company incurred $3.4 million in pre-tax non-operating expenses in the fourth quarter of 2015 associated with branch closures. An additional $2.7 million in pre-tax non-operating expenses is estimated to be incurred in the first quarter of 2016. The estimated pay-back period associated with the branch closures and consolidations in 2016 is approximately two years.
  • Total loan growth was $210 million, or 1%, between September 30, 2015 and December 31, 2015. Legacy loan growth, which excludes all assets covered under FDIC loss share agreements and other non-covered acquired assets (collectively, "Acquired Assets"), increased $411 million, or 4% (15% annualized rate), on a period-end basis and $377 million, or 4% (14% annualized rate), on an average balance basis.
  • Total deposits decreased $124 million, or less than 1%, between quarter-ends, and decreased $77 million, or less than 1%, on an average balance basis. Non-interest-bearing deposits decreased $41 million, or 1%, between quarter-ends and increased $194 million, or 5%, on an average balance basis. The Company's loan-to-deposit ratio was 89% at year-end 2015, down from 91% one year prior.

Table A - Summary Financial Results

(Dollars in thousands, except per share data)

For the Three Months Ended

12/31/2015

9/30/2015

% Change

12/31/2014(1)

% Change

Net income

$        44,407

$        42,475

4.5

$        35,936

23.6

Earnings per common share - diluted

1.08

1.03

4.9

1.07

0.9

Average gross loans and leases

$ 14,185,150

$ 14,009,601

1.3

$ 11,271,752

25.8

Average total deposits

16,292,755

16,369,564

(0.5)

12,514,479

30.2

Net interest margin (TE) (2)

3.64

%

3.50

%

3.53

%

OPERATING BASIS (NON-GAAP) (3):

Total revenues

$      213,506

$      210,374

1.5

$      171,378

24.6

Total non-interest expense

134,111

140,497

(4.5)

115,961

15.7

Earnings per common share - diluted

1.11

1.07

3.7

1.05

5.7

Tangible efficiency ratio (TE)(2) (5)

61.1

%

64.8

%

65.7

%

Return on average assets

0.92

0.89

0.89

Return on average tangible common equity

11.20

11.18

11.17

Net interest margin (TE) - cash basis (2)(4)

3.38

3.31

3.35

(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015.

(2)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%.

(3)

See Table 11 and Table 12 for GAAP to Non-GAAP reconciliations.

(4)

See Table 10 for adjustments related to purchase discounts on acquired loans and related accretion and the impact of the FDIC indemnification asset.

(5)

Tangible calculations eliminate the effect of goodwill and acquisition related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable.

 

Operating Results

On a linked quarter basis, average loan volume (including the FDIC loss share receivable) increased $170 million, or 1%, and the associated yield increased eight basis points.  Over that period, average legacy loans increased $377 million, or 4%, with an increase in yield of two basis points, and acquired loans (including the FDIC loss share receivable) decreased $208 million, or 6%, and the yield increased 38 basis points due to pool closings, ongoing recoveries, and other factors.  All other average earning assets, including investment securities, mortgage loans held for sale, and interest-bearing deposits in other institutions, decreased a total of $193 million, or 5%.

On a linked quarter basis, average earning assets decreased $24 million, or less than 1%, and the average earning asset yield increased 13 basis points. Average interest-bearing liabilities decreased $295 million, or 2%, and the cost of interest-bearing liabilities decreased one basis point.  As a result, the net interest spread and margin each increased 14 basis points.  On a linked quarter basis, tax-equivalent net interest income increased $6 million, or 4%, primarily due to the net interest margin improvement.

In the fourth quarter of 2015, non-interest income decreased $5.0 million, or 9%, compared to the third quarter of 2015.  Non-operating non-interest income totaled $0.2 million in the fourth quarter of 2015.  Operating non-interest income decreased $2.9 million, or 5%, on a linked quarter basis.  The primary changes in operating non-interest income due to seasonal influences on a linked quarter basis included:

  • Decreased mortgage income of $3.6 million, or 17%; and
  • Decreased title revenues of $1.2 million, or 18%; partially offset by
  • Increased COLI income of $1.4 million (partially offset by increased COLI expense of $1.2 million).

In the fourth quarter of 2015, the Company originated $558 million in residential mortgage loans, down $162 million, or 22%, on a linked quarter basis.  Client loan refinancing opportunities accounted for approximately 23% of mortgage loan applications in the fourth quarter of 2015, compared to 19% in the third quarter of 2015.  The Company sold $597 million in mortgage loans during the fourth quarter of 2015, down $129 million, or 18%, on a linked quarter basis.  Loans held for sale declined from $202 million at September 30, 2015, to $166 million at December 31, 2015.  The mortgage origination locked pipeline decreased $56 million, or 20%, between September 30, 2015, and December 31, 2015, to $227 million at quarter-end, but up $90 million, or 66%, over the comparable period last year.  At January 22, 2016, the locked pipeline was $252 million, up $25 million, or 11%, compared to December 31, 2015.  The mortgage loan origination business primarily focuses on retail mortgage loans originated by the Company.

Assets under management at IBERIA Wealth Advisors ("IWA") were $1.4 billion at December 31, 2015, up 1% compared to September 30, 2015.  Revenues for IWA were unchanged on a linked quarter basis, and were up 11% compared to the fourth quarter of 2014.  IBERIA Financial Services revenues increased 4% on a linked quarter basis, and were up 45% compared to the fourth quarter of 2014.  IBERIA Capital Partners revenues increased 24% on a linked quarter basis, and were down 49% compared to the fourth quarter of 2014.

Non-interest expense decreased $6.0 million, or 4%, on a linked quarter basis, while operating expense decreased $6.4 million, or 5%.  Operating expense changes included the following on a linked-quarter basis:

  • Decreased mortgage origination commissions of $1.8 million, or 26%;
  • Decreased provision for unfunded commitments of $1.7 million;
  • Decreased occupancy and equipment expense of $1.0 million, or 5%;
  • Decreased marketing and business development expenses of $1.0 million, or 31%; and
  • Decreased professional services expense of $1.0 million, or 19%.

The Company's operating tangible efficiency ratio in the fourth quarter of 2015 was 61.1%, down from 64.8% in the third quarter of 2015.  The Company continues to work expense savings and revenue enhancement initiatives intended to achieve the targeted operating tangible efficiency ratio of 60% by the fourth quarter of 2016.

In the fourth quarter of 2015, the Company recorded $2.0 million in tax benefits associated with amended prior tax returns and other tax matters.  Similar to $3.0 million in tax benefits recorded in the fourth quarter of 2014, the Company considers the tax benefits in 2015 to be non-operating in nature.  

Table B - Summary Financial Condition Results

(Dollars in thousands, except per share data)

As of and For the Three Months Ended

12/31/2015

9/30/2015

% Change

12/31/2014 (1)

% Change

PERIOD-END BALANCES:

Total loans and leases

$ 14,327,428

$ 14,117,019

1.5

$ 11,441,044

25.2

Legacy loans and leases

11,190,520

10,779,258

3.8

9,668,714

15.7

Total deposits

16,178,748

16,303,065

(0.8)

12,520,525

29.2

ASSET QUALITY RATIOS (LEGACY):

Past due loans to total loans(2)

0.64

%

0.64

%

0.68

%

Non-performing assets to total assets(3)

0.42

0.43

0.41

Classified assets to total assets(4)

1.02

0.83

0.57

CAPITAL RATIOS:

Tangible common equity ratio (Non-GAAP) (5) (6)

8.86

%

8.75

%

8.59

%

Tier 1 leverage ratio

9.52

9.33

9.35

Total risk-based capital ratio

12.14

12.15

12.30

PER COMMON SHARE DATA:

Book value

$          58.87

$          58.49

0.6

$          55.37

6.3

Tangible book value (6)

40.35

39.95

1.0

39.08

3.2

Closing stock price

55.07

58.21

(5.4)

64.85

(15.1)

Cash dividends

0.34

0.34

0.34

(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015.

(2)

Past due loans include non-accruing loans.

(3)

Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets.

(4)

Classified assets consist of $166 million, $133 million and $79 million at December 31, 2015, September 30, 2015, and December 31, 2014, respectively.

(5)

See Table 12 for the GAAP to Non-GAAP reconciliation.

(6)

Tangible calculations eliminate the effect of goodwill and acquisition related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable.

 

Loans

Total loans increased $210 million, or 1%, between September 30, 2015, and December 31, 2015.  Over that period, the acquired loan portfolio decreased $201 million, or 6%, and legacy loans increased $411 million, or 4% (15% annualized rate), including a decline in energy-related loans of $39 million, or 5%, and a decline in indirect automobile loans of $35 million, or 13%.  During the fourth quarter, legacy commercial loans increased $318 million, or 4% (which included $56 million in small business loan growth, up 5%, or 14% annualized rate), legacy consumer loans increased $60 million, or 3% (10% annualized rate), and legacy mortgage loans increased $33 million, or 5% (20% annualized rate).  Period-end loan growth during the fourth quarter of 2015 was strongest in the Dallas, Naples, Southeast Florida, Houston, and Birmingham markets.  Funded loan origination and renewal mix in the fourth quarter of 2015 was 39% fixed rate and 61% floating rate, and total loans outstanding (excluding non-accruals) were 46% fixed and 54% floating.  Loans and commitments originated and/or renewed during the fourth quarter of 2015 totaled $1.5 billion (up 14% on a linked quarter basis).  At December 31, 2015, the Company's commercial loan pipeline was approximately $700 million.  

Table C - Period-End Loans

(Dollars in thousands, except per share data)

As of and For the Three Months Ended

Linked Qtr Change

Year/Year Change

Mix

12/31/2015

9/30/2015

12/31/2014

$

%

Annualized

$

%

12/31/2015

9/30/2015

Legacy loans:

Commercial

$   8,133,341

$   7,815,161

$   7,002,198

318,180

4.1

16.3 %

1,131,143

16.2

72.7 %

72.5 %

Residential mortgage

694,023

660,543

527,694

33,480

5.1

20.3 %

166,329

31.5

6.2 %

6.1 %

Consumer

2,363,156

2,303,554

2,138,822

59,602

2.6

10.3 %

224,334

10.5

21.1 %

21.4 %

Total legacy loans

11,190,520

10,779,258

9,668,714

411,262

3.8

15.3 %

1,521,806

15.7

100 %

100 %

Acquired loans:

Balance at beginning of period

3,337,761

3,555,010

1,900,945

(217,249)

(6.1)

1,436,816

75.6

Loans acquired during the period

Net paydown activity

(200,853)

(217,249)

(128,615)

16,396

(7.5)

(72,238)

56.2

Total acquired loans

3,136,908

3,337,761

1,772,330

(200,853)

(6.0)

1,364,578

77.0

Total loans

$ 14,327,428

$ 14,117,019

$ 11,441,044

210,409

1.5

2,886,384

25.2

 

Energy-related loans outstanding totaled $681 million at December 31, 2015, down $39 million, or 5%, compared to September 30, 2015, and equated to approximately 4.8% of total loans.  Loans to exploration and production companies accounted for 46% of energy loans outstanding and 56% of energy loan commitments at December 31, 2015.  Midstream companies accounted for 17% of energy loans and 16% of energy loan commitments, and service companies accounted for 37% of energy loans and 29% of energy loan commitments.  At December 31, 2015, $8.4 million in energy loans were on non-accrual status (compared to $4.9 million at September 30, 2015) and $15,000 was past due greater than 30 days at quarter-end (compared to $0.5 million at September 30, 2015).  At December 31, 2015,  approximately 12% of energy loans were classified and 22% were criticized.  To date, the Company has experienced no energy-related charge-offs.  Additional information regarding the Company's energy loan and commitment exposure is provided in the supplemental investor presentation.

At December 31, 2015, the Company's indirect automobile lending business had approximately $246 million in loans outstanding, down $35 million, or 13%, compared to September 30, 2015 (1.7% of total loans outstanding compared to 2.0% and 3.5% at September 30, 2015, and December 31, 2014, respectively).  For the year ended December 31, 2015, indirect loans declined $151 million, or 38%, while the volume of loans past due 30 days or more declined over the period.

Deposits

Total deposits decreased $124 million, or less than 1%, from September 30, 2015 to December 31, 2015.  Non-interest-bearing deposits decreased $41 million, or less than 1%, and equated to 27% of total deposits at December 31, 2015.  NOW accounts increased $339 million, or 13%, while money market accounts decreased $264 million, or 4%, between September 30, 2015 and December 31, 2015.  Time deposits decreased $151 million, or 7%, between quarter-ends.  Deposit growth during the fourth quarter of 2015 was strongest in the New Orleans, Florida Keys, Lafayette, Mobile, and Memphis markets.  

Table D - Period-End Deposits

(Dollars in thousands)

Linked Qtr Change (1)

Year/Year Change(1)

Mix

12/31/2015

9/30/2015

12/31/2014

$

%

Annualized

$

%

12/31/2015

9/30/2015

Non-interest-bearing

$   4,352,229

$   4,392,808

$   3,195,430

(40,579)

(0.9)

(3.7)%

1,156,799

36.2

26.9 %

26.9 %

NOW accounts

2,974,176

2,635,021

2,462,841

339,155

12.9

51.5%

511,335

20.8

18.4 %

16.2 %

Money market accounts

6,010,882

6,274,428

4,168,504

(263,546)

(4.2)

(16.8)%

1,842,378

44.2

37.2 %

38.5 %

Savings accounts

716,838

725,435

577,513

(8,597)

(1.2)

(4.7)%

139,325

24.1

4.4 %

4.4 %

Time deposits

2,124,623

2,275,373

2,116,237

(150,750)

(6.6)

(26.5)%

8,386

0.4

13.1 %

14.0 %

Total deposits

$ 16,178,748

$ 16,303,065

$ 12,520,525

(124,317)

(0.8)

(3.1)%

3,658,223

29.2

100 %

100 %

(1)

Growth includes the impact of acquisitions.

 

On an average balance and linked quarter basis, non-interest-bearing deposits increased $194 million, or 5%, and interest-bearing deposits decreased $271 million, or 2%.  The rate on average interest-bearing deposits in the fourth quarter of 2015 was 0.43%, unchanged on a linked quarter basis.

Other Assets And Funding

On a linked quarter basis, the investment portfolio increased $204 million, or 8%, to $2.9 billion on average in the fourth quarter of 2015.  On a period-end basis, the investment portfolio equated to $2.9 billion, or 15% of total assets at December 31, 2015, unchanged compared to September 30, 2015.  The investment portfolio had an effective duration of 3.3 years at December 31, 2015, compared to 3.1 years at September 30, 2015.  The investment portfolio had a $1 million unrealized loss at December 31, 2015.  The average yield on investment securities increased five basis points on a linked quarter basis to 2.21% in the fourth quarter of 2015.  The Company holds in its investment portfolio primarily government agency securities.  Municipal securities comprised only 9% of total investments at December 31, 2015.  The Company holds for investment no sovereign debt, equity securities, trust preferred securities, or derivative exposure to foreign counterparties.

On a linked quarter basis, average short-term borrowings (including repurchase agreements) decreased $22 million, or 8%, and the cost of short-term borrowings declined one basis point.  At December 31, 2015, short-term borrowings (including repurchase agreements) declined $519 million, or 61%, compared to $846 million one year prior.  On a linked quarter basis, average long-term debt decreased $2 million, or less than 1%, and the cost of long-term debt increased three basis points to 3.02%.  The cost of average interest-bearing liabilities was 0.49% in the fourth quarter of 2015, down one basis point on a linked quarter basis.

Asset Quality

Between September 30, 2015 and December 31, 2015, legacy non-performing assets ("NPAs") decreased $2 million, or 3%.  At December 31, 2015, NPAs included $8 million in former bank branches and related real estate, a decrease of 2% compared to September 30, 2015.  At December 31, 2015, legacy NPAs equated to 0.42% of total assets, down from 0.43% at September 30, 2015, and 0.37% of total assets excluding bank-related properties, down from 0.38% at September 30, 2015.  Legacy loans past due 30 days or more (excluding non-accruing loans) increased $3 million, or 20%, and represented 0.19% of total legacy loans at December 31, 2015, compared to 0.16% at September 30, 2015.

Net charge-offs totaled $2.9 million in the fourth quarter of 2015, up $0.5 million, or 19%, compared to the third quarter of 2015.  Annualized net charge-offs equated to 0.08% of average loans in the fourth quarter of 2015, up one basis point on a linked quarter basis.  The Company's provision for loan losses increased $6.6 million, or 131%, on a linked quarter basis to $11.7 million.

Capital Position

At December 31, 2015, the Company reported a tangible common equity ratio of 8.86%, up 11 basis points compared to September 30, 2015, and the preliminary Tier 1 leverage ratio was 9.52%, up 19 basis points compared to September 30, 2015. The Company's preliminary calculation of total risk-based capital ratio at December 31, 2015, was 12.14%, down one basis point compared to September 30, 2015. Beginning on January 1, 2016, the remaining 25% of trust preferred securities included in the Company's Tier 1 capital ratio at year-end 2015 was phased into Tier 2 capital for future periods. As a result, the impact on Tier 1 capital ratios is estimated to be approximately 18 basis points. No impact on the Company's total risk based capital ratio is associated with this change.

At December 31, 2015, book value per common share was $58.87, up $0.38 per share, or 1%, compared to September 30, 2015. Tangible book value per common share was $40.35, up $0.40 per share, or 1%, compared to September 30, 2015.  Based on the closing stock price of the Company's common stock of $44.78 per share on January 27, 2016, this price equated to 0.76 times December 31, 2015 book value and 1.11 times December 31, 2015 tangible book value per common share.

On December 15, 2015, the Company declared a quarterly cash dividend of $0.34 per common share. This common dividend level equated to an annualized dividend rate of $1.36 per common share.  Based on the Company's closing common stock price on January 27, 2016, the indicated dividend yield was 3.04% per common share.

On August 5, 2015, the Company sold 3.2 million depositary shares, each representing a 1/400th interest in a share of non-cumulative perpetual preferred stock. The preferred stock has an initial coupon equal to 6.625% for a period of 10 years, and thereafter floats at a rate of LIBOR plus 426.2 basis points. The Company raised approximately $80 million in gross proceeds ($77 million net proceeds) from the transaction.  On January 4, 2016, the Company declared a semi-annual cash dividend of $0.805 per depositary share that will be payable on February 1, 2016.

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with 319 combined offices, including 219 bank branch offices and three loan production offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, and Georgia, 22 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 68 locations in 10 states.  The Company has seven locations with representatives of IBERIA Wealth Advisors in four states, and one IBERIA Capital Partners, L.L.C. office in New Orleans.

The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC" and its Series B Preferred Stock trades on the NASDAQ Global Select Market under the symbol "IBKCP".  The Company's common stock market capitalization was approximately $1.8 billion, based on the NASDAQ Global Select Market closing stock price on January 27, 2016.

The following 11 investment firms currently provide equity research coverage on the Company:

  • Bank of America Merrill Lynch
  • FIG Partners, LLC
  • Hovde Group, LLC
  • Jefferies & Co., Inc.
  • Keefe, Bruyette & Woods, Inc.
  • Piper Jaffray & Co.
  • Raymond James & Associates, Inc.
  • Robert W. Baird & Company
  • Sandler O'Neill + Partners, L.P.
  • Stephens, Inc.
  • SunTrust Robinson-Humphrey

Conference Call

In association with this earnings release, the Company will host a live conference call to discuss the financial results for the quarter just completed. The telephone conference call will be held on Thursday, January 28, 2016, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 4509810.  A replay of the call will be available until midnight Central Time on February 4, 2016 by dialing 1-877-344-7529. The confirmation code for the replay is 10077982.  The Company has prepared a PowerPoint presentation that supplements information contained in this press release.  The PowerPoint presentation may be accessed on the Company's web site, www.iberiabank.com, under "Investor Relations" and then "Presentations."

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with GAAP. The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or transactions that in management's opinion can distort period-to-period comparisons of the Company's performance. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.  Reconciliations of GAAP to non-GAAP disclosures are included as tables at the end of this release.  Refer to press release supplemental table for this reconciliation.

Caution About Forward-Looking Statements

This press release contains "forward-looking statements," which may include forecasts of our financial results and condition, expectations for our operations and businesses, and our assumptions for those forecasts and expectations. Do not place undue reliance on forward-looking statements. Due to various factors, actual results may differ materially from our forward-looking statements. Factors that could cause our actual results to differ materially from our forward-looking statements are described under "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Risk Factors" and "Regulation and Supervision" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014, and in other documents subsequently filed by the Company with the Securities and Exchange Commission, available at the SEC's website, http://www.sec.gov, and the Company's website, http://www.iberiabank.com. To the extent that statements in this press release relate to future plans, objectives, financial results or performance by the Company, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are generally identified by use of words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology.

Forward-looking statements represent management's beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance.  Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements.  Factors that could cause or contribute to such differences include, but are not limited to: the level of market volatility, our ability to execute our growth strategy, including the availability of future bank acquisition opportunities, our ability to execute on our revenue and efficiency improvement initiatives, unanticipated losses related to the completion and integration of mergers and acquisitions, refinements to purchase accounting adjustments for acquired businesses and assets and assumed liabilities in these transactions, adjustments of fair values of acquired assets and assumed liabilities and of deferred taxes in acquisitions, actual results deviating from the Company's current estimates and assumptions of timing and amounts of cash flows, credit risk of our customers, resolution of assets subject to loss share agreements with the FDIC within the coverage periods, effects of the on-going correction in residential real estate prices and  levels of home sales, our ability to satisfy new capital and liquidity standards such as those imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act and those adopted by the Basel Committee on Banking Supervision and federal banking regulators, sufficiency of our allowance for loan losses, changes in interest rates, access to funding sources, reliance on the services of executive management, competition for loans, deposits and investment dollars, competition from competitors with greater financial resources than the Company, reputational risk and social factors, changes in government regulations and legislation, increases in FDIC insurance assessments, geographic concentration of our markets, economic and business conditions in our markets or nationally, including the impact of volatility of oil and gas prices, rapid changes in the financial services industry, significant litigation, cyber-security risks including dependence on our operational, technological, and organizational systems and infrastructure and those of third party providers of those services, hurricanes and other adverse weather events, and valuation of intangible assets. All information in this discussion is as of the date of this press release. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

Table 1 - IBERIABANK CORPORATION

FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per share data)

As of and For the Three Months Ended

INCOME DATA:

12/31/2015

9/30/2015

% Change

12/31/2014 (1)

% Change

Net interest income

$ 161,160

$ 155,117

3.9

$ 124,680

29.3

Net interest income (TE)(2)

163,544

157,302

4.0

126,735

29.0

Total revenues

213,663

212,595

0.5

171,752

24.4

Provision for loan losses

11,711

5,062

131.4

6,495

80.3

Non-interest expense

138,975

144,968

(4.1)

119,135

16.7

Net income

44,407

42,475

4.5

35,936

23.6

PER COMMON SHARE DATA:

Earnings available to common shareholders - basic

$       1.08

$       1.04

3.8

$       1.08

Earnings available to common shareholders - diluted

1.08

1.03

4.9

1.07

0.9

Operating earnings (Non-GAAP) (3)

1.11

1.07

3.7

1.05

5.7

Book value

58.87

58.49

0.6

55.37

6.3

Tangible book value (4)

40.35

39.95

1.0

39.08

3.2

Closing stock price

55.07

58.21

(5.4)

64.85

(15.1)

Cash dividends

0.34

0.34

0.34

KEY RATIOS AND OTHER DATA (7):

Net interest margin (TE)(2)

3.64

%

3.50

%

3.53

%

Efficiency ratio

65.0

68.2

69.4

Tangible operating efficiency ratio (TE) (Non-GAAP) (2) (3) (4)

61.1

64.8

65.7

Return on average assets

0.90

0.86

0.91

Return on average common equity

7.30

7.09

7.79

Return on average operating tangible common equity (Non-GAAP) (3)(4)

11.20

11.18

11.17

Effective tax rate

29.5

32.1

22.1

Full-time equivalent employees

3,151

3,214

2,757

CAPITAL RATIOS:

Tangible common equity ratio (Non-GAAP) (3) (4)

8.86

%

8.75

%

8.59

%

Tangible common equity to risk-weighted assets(4)

9.89

10.02

10.37

Tier 1 leverage ratio

9.52

9.33

9.35

Common equity Tier 1 (CET 1) (transitional) (5)

10.07

10.08

N/A 

Common equity Tier 1 (CET 1) (fully phased-in) (5)

9.94

9.92

 N/A 

Tier 1 capital (transitional) (5)

10.70

10.73

10.32

Total risk-based capital ratio (5)

12.14

12.15

12.30

Common stock dividend payout ratio

31.5

32.9

31.7

Classified assets to Tier 1 capital

17.7

17.5

18.6

ASSET QUALITY RATIOS (LEGACY):

Non-performing assets to total assets(6)

0.42

%

0.43

%

0.41

%

Allowance for loan losses to loans

0.84

0.80

0.79

Net charge-offs to average loans (annualized)

0.09

0.09

0.06

Non-performing assets to total loans and OREO (6)

0.61

0.65

0.59

(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015.

(2)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%.

(3)

See Table 11 and Table 12 for the GAAP to Non-GAAP reconciliations.

(4)

Tangible calculations eliminate the effect of goodwill and acquisition related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable.

(5)

Capital ratios as of December 31, 2015 are estimated.

(6)

Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets.

(7)

All ratios are calculated on an annualized basis for the periods indicated.

 

Table 2 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Dollars in thousands, except per share data)

For the Three Months Ended

Linked Qtr Change

Year/Year Change

12/31/2015

9/30/2015

$

%

6/30/2015

3/31/2015

12/31/2014(1)

$

%

Interest income

$ 176,651

$ 171,077

5,574

3.3

$ 160,545

$ 138,585

$      137,276

39,375

28.7

Interest expense

15,491

15,960

(469)

(2.9)

14,868

12,781

12,596

2,895

23.0

Net interest income

161,160

155,117

6,043

3.9

145,677

125,804

124,680

36,480

29.3

Provision for loan losses

11,711

5,062

6,649

131.4

8,790

5,345

6,495

5,216

80.3

Net interest income after provision for loan losses

149,449

150,055

(606)

(0.4)

136,887

120,459

118,185

31,264

26.5

Mortgage income

17,123

20,730

(3,607)

(17.4)

25,246

18,023

13,646

3,477

25.5

Service charges on deposit accounts

11,431

11,342

89

0.8

10,162

9,262

10,153

1,278

12.6

Title revenue

5,435

6,627

(1,192)

(18.0)

6,146

4,629

5,486

(51)

(0.9)

Broker commissions

4,130

3,839

291

7.6

5,461

4,162

3,960

170

4.3

ATM/debit card fee income

3,569

3,562

7

0.2

3,583

3,275

3,331

238

7.1

Income from bank owned life insurance

1,096

1,093

3

0.3

1,075

1,092

1,050

46

4.4

Gain on sale of available-for-sale securities

6

280

(274)

(97.9)

903

386

162

(156)

(96.3)

Other non-interest income

9,713

10,005

(292)

(2.9)

8,937

8,070

9,284

429

4.6

Total non-interest income

52,503

57,478

(4,975)

(8.7)

61,513

48,899

47,072

5,431

11.5

Salaries and employee benefits

83,455

82,416

1,039

1.3

84,019

72,696

65,445

18,010

27.5

Occupancy and equipment

16,928

17,987

(1,059)

(5.9)

17,366

16,260

14,594

2,334

16.0

Amortization of acquisition intangibles

1,795

2,338

(543)

(23.2)

2,155

1,523

1,618

177

10.9

Other non-interest expense

36,797

42,227

(5,430)

(12.9)

49,669

42,674

37,478

(681)

(1.8)

Total non-interest expense

138,975

144,968

(5,993)

(4.1)

153,209

133,153

119,135

19,840

16.7

Income before income taxes

62,977

62,565

412

0.7

45,191

36,205

46,122

16,855

36.5

Income tax expense

18,570

20,090

(1,520)

(7.6)

14,355

11,079

10,186

8,384

82.3

Net income

$   44,407

$   42,475

1,932

4.5

$   30,836

$   25,126

$        35,936

8,471

23.6

Income available to common shareholders - basic

$   44,407

$   42,475

1,932

4.5

$   30,836

$   25,126

$        35,936

8,471

23.6

Earnings allocated to unvested restricted stock

(505)

(492)

(13)

2.6

(355)

(344)

(523)

18

(3.4)

Income allocated to common shareholders

$   43,902

$   41,983

1,919

4.6

$   30,481

$   24,782

$        35,413

8,489

24.0

Earnings per common share - basic

$       1.08

$       1.04

0.04

3.8

$       0.79

$       0.75

$            1.08

0.00

0.0

Earnings per common share - diluted

1.08

1.03

0.05

4.9

0.79

0.75

1.07

0.01

0.9

Impact of non-operating items (Non-GAAP)(2)

0.03

0.04

(0.01)

(25.0)

0.26

0.20

(0.02)

0.05

(250.0)

Earnings per share - diluted, excluding non-operating items (Non-GAAP)(3)

$       1.11

$       1.07

0.04

3.7

$       1.05

$       0.95

$            1.05

0.06

5.7

NUMBER OF COMMON SHARES OUTSTANDING (in thousands)

Weighted average common shares outstanding - basic

40,996

40,995

1

0.0

39,015

33,659

33,333

7,663

23.0

Weighted average common shares outstanding - diluted

40,597

40,614

(17)

(0.0)

38,667

33,235

32,947

7,650

23.2

Book value shares (period end)(3)

41,140

41,129

11

0.0

41,117

38,178

33,453

7,687

23.0

(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015.

(2)

See Table 11 for GAAP to Non-GAAP reconciliation.

(3)

Shares used for book value purposes exclude shares held in treasury at the end of December 31, 2014.

 

Table 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Dollars in thousands, except per share data)

For the Years Ended

12/31/2015

12/31/2014 (1)

$ Change

% Change

Interest income

$     646,858

$          504,815

142,043

28.1

Interest expense

59,100

44,704

14,396

32.2

Net interest income

587,758

460,111

127,647

27.7

Provision for loan losses

30,908

19,060

11,848

62.2

Net interest income after provision for loan losses

556,850

441,051

115,799

26.3

Mortgage income

81,122

51,797

29,325

56.6

Service charges on deposit accounts

42,197

35,573

6,624

18.6

Title revenue

22,837

20,492

2,345

11.4

Broker commissions

17,592

18,783

(1,191)

(6.3)

ATM/debit card fee income

13,989

12,023

1,966

16.4

Income from bank owned life insurance

4,356

5,473

(1,117)

(20.4)

Gain on sale of available-for-sale securities

1,575

771

804

104.3

Other non-interest income

36,725

28,716

8,009

27.9

Total non-interest income

220,393

173,628

46,765

26.9

Salaries and employee benefits

322,586

259,086

63,500

24.5

Occupancy and equipment

68,541

59,571

8,970

15.1

Amortization of acquisition intangibles

7,811

5,807

2,004

34.5

Other non-interest expense

171,367

149,150

22,217

14.9

Total non-interest expense

570,305

473,614

96,691

20.4

Income before income taxes

206,938

141,065

65,873

46.7

Income tax expense

64,094

35,683

28,411

79.6

Net income

$     142,844

$          105,382

37,462

35.5

Income available to common shareholders - basic

$     142,844

$          105,382

37,462

35.5

Earnings allocated to unvested restricted stock

(1,680)

(1,651)

(29)

1.8

Income allocated to common shareholders 

$     141,164

$          103,731

37,433

36.1

Earnings per common share - basic

$           3.69

$                3.31

0.38

11.5

Earnings per common share - diluted

3.68

3.30

0.38

11.5

Impact of non-operating items (Non-GAAP)(2)

0.50

0.43

0.07

16.3

Earnings per share - diluted, excluding non-operating items (Non-GAAP)(2)

$           4.18

$                3.72

0.46

12.4

NUMBER OF COMMON SHARES OUTSTANDING (in thousands)

Weighted average common shares outstanding - basic

38,692

31,825

6,867

21.6

Weighted average common shares outstanding - diluted

38,310

31,433

6,877

21.9

Book value shares (period end) 

41,140

33,453

7,687

23.0

(1)

Certain balances and amounts for the year ended December 31, 2014 have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015.

(2)

See Table 11 for GAAP to Non-GAAP reconciliation.

 

TABLE 4 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

PERIOD-END BALANCES

Linked Qtr Change

Year/Year Change

ASSETS

12/31/2015

9/30/2015

$

%

6/30/2015

3/31/2015

12/31/2014(1)

$

%

Cash and due from banks

$      241,650

$      370,657

(129,007)

(34.8)

$      300,257

$      268,241

$      251,994

(10,344)

(4.1)

Interest-bearing deposits in other banks

268,617

311,615

(42,998)

(13.8)

591,018

696,000

296,101

(27,484)

(9.3)

Total cash and cash equivalents

510,267

682,272

(172,005)

(25.2)

891,275

964,241

548,095

(37,828)

(6.9)

Investment securities available for sale

2,800,286

2,827,805

(27,519)

(1.0)

2,413,158

2,342,613

2,158,853

641,433

29.7

Investment securities held to maturity

98,928

98,330

598

0.6

101,475

113,442

116,960

(18,032)

(15.4)

Total investment securities

2,899,214

2,926,135

(26,921)

(0.9)

2,514,633

2,456,055

2,275,813

623,401

27.4

Mortgage loans held for sale

166,247

202,168

(35,921)

(17.8)

220,765

215,044

140,072

26,175

18.7

Loans, net of unearned income

14,327,428

14,117,019

210,409

1.5

13,950,563

12,873,461

11,441,044

2,886,384

25.2

Allowance for loan losses

(138,378)

(130,254)

(8,124)

6.2

(128,149)

(128,313)

(130,131)

(8,247)

6.3

Loans, net

14,189,050

13,986,765

202,285

1.4

13,822,414

12,745,148

11,310,913

2,878,137

25.4

Loss share receivable

39,878

43,443

(3,565)

(8.2)

50,452

60,972

69,627

(29,749)

(42.7)

Premises and equipment

323,902

333,273

(9,371)

(2.8)

342,949

337,201

307,159

16,743

5.5

Goodwill and other intangibles

765,655

766,589

(934)

(0.1)

765,813

672,337

548,130

217,525

39.7

Other assets

609,855

593,580

16,275

2.7

630,627

600,764

558,095

51,760

9.3

Total assets

$ 19,504,068

$ 19,534,225

(30,157)

(0.2)

$ 19,238,928

$ 18,051,762

$ 15,757,904

3,746,164

23.8

LIABILITIES AND SHAREHOLDERS' EQUITY

Non-interest-bearing deposits

$   4,352,229

$   4,392,808

(40,579)

(0.9)

$   4,166,850

$   3,860,820

$   3,195,430

1,156,799

36.2

NOW accounts

2,974,176

2,635,021

339,155

12.9

2,623,697

2,729,791

2,462,841

511,335

20.8

Savings and money market accounts

6,727,720

6,999,863

(272,143)

(3.9)

6,925,038

5,796,443

4,746,017

1,981,703

41.8

Certificates of deposit

2,124,623

2,275,373

(150,750)

(6.6)

2,403,956

2,277,970

2,116,237

8,386

0.4

Total deposits

16,178,748

16,303,065

(124,317)

(0.8)

16,119,541

14,665,024

12,520,525

3,658,223

29.2

Short-term borrowings

110,000

10,000

100,000

1,000.0

59,300

352,300

603,000

(493,000)

(81.8)

Securities sold under agreements to repurchase

216,617

212,460

4,157

2.0

209,004

252,602

242,742

(26,125)

(10.8)

Trust preferred securities

120,110

120,110

120,110

111,862

111,862

8,248

7.4

Other long-term debt

220,337

221,863

(1,526)

(0.7)

222,202

349,027

291,392

(71,055)

(24.4)

Other liabilities

159,421

183,526

(24,105)

(13.1)

143,487

153,617

136,235

23,186

17.0

Total liabilities

17,005,233

17,051,024

(45,791)

(0.3)

16,873,644

15,884,432

13,905,756

3,099,477

22.3

Total shareholders' equity

2,498,835

2,483,201

15,634

0.6

2,365,284

2,167,330

1,852,148

646,687

34.9

Total liabilities and shareholders' equity

$ 19,504,068

$ 19,534,225

(30,157)

(0.2)

$ 19,238,928

$ 18,051,762

$ 15,757,904

3,746,164

23.8

(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015.

 

TABLE 4 Continued - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

AVERAGE BALANCES

Linked Qtr Change

Year/Year Change

ASSETS

12/31/2015

9/30/2015

$

%

6/30/2015

3/31/2015

12/31/2014(1)

$

%

Cash and due from banks

$      352,854

$      327,370

25,484

7.8

$      263,844

$      243,566

$      239,377

113,477

47.4

Interest-bearing deposits in other banks

319,302

682,764

(363,462)

(53.2)

582,032

324,150

353,716

(34,414)

(9.7)

Total cash and cash equivalents

672,156

1,010,134

(337,978)

(33.5)

845,876

567,716

593,093

79,063

13.3

Investment securities available for sale

2,829,825

2,660,423

169,402

6.4

2,417,002

2,223,344

2,142,981

686,844

32.1

Investment securities held to maturity

100,113

99,864

249

0.2

106,871

115,188

118,588

(18,475)

(15.6)

Total investment securities

2,929,938

2,760,287

169,651

6.1

2,523,873

2,338,532

2,261,569

668,369

29.6

Mortgage loans held for sale

169,616

200,895

(31,279)

(15.6)

202,691

133,304

121,438

48,178

39.7

Loans, net of unearned income

14,185,150

14,009,601

175,549

1.3

13,297,724

11,563,946

11,271,752

2,913,398

25.8

Allowance for loan losses

(135,209)

(130,367)

(4,842)

3.7

(129,069)

(128,519)

(134,177)

(1,032)

0.8

Loans, net

14,049,941

13,879,234

170,707

1.2

13,168,655

11,435,427

11,137,575

2,912,366

26.1

Loss share receivable

41,205

47,190

(5,985)

(12.7)

55,751

66,165

85,733

(44,528)

(51.9)

Premises and equipment

329,604

339,860

(10,256)

(3.0)

341,829

311,158

308,223

21,381

6.9

Goodwill and other intangibles

766,664

766,712

(48)

(0.0)

708,085

555,565

552,888

213,776

38.7

Other assets

592,042

599,758

(7,716)

(1.3)

598,526

549,746

553,804

38,238

6.9

Total assets

$ 19,551,166

$ 19,604,070

(52,904)

(0.3)

$ 18,445,286

$ 15,957,613

$ 15,614,323

3,936,843

25.2

LIABILITIES AND SHAREHOLDERS' EQUITY

Non-interest-bearing deposits

$   4,459,980

$   4,265,912

194,068

4.5

$   3,933,468

$   3,312,357

$   3,228,773

1,231,207

38.1

NOW accounts

2,720,128

2,655,069

65,059

2.5

2,639,140

2,464,760

2,271,836

448,292

19.7

Savings and money market accounts

6,899,090

7,104,789

(205,699)

(2.9)

6,228,052

4,834,244

4,908,247

1,990,843

40.6

Certificates of deposit

2,213,557

2,343,794

(130,237)

(5.6)

2,331,537

2,150,447

2,105,623

107,934

5.1

Total deposits

16,292,755

16,369,564

(76,809)

(0.5)

15,132,197

12,761,808

12,514,479

3,778,276

30.2

Short-term borrowings

16,109

41,033

(24,924)

(60.7)

225,437

483,413

449,190

(433,081)

(96.4)

Securities sold under agreements to repurchase

224,255

221,217

3,038

1.4

236,305

263,645

264,194

(39,939)

(15.1)

Trust preferred securities

120,110

120,110

114,581

111,862

111,862

8,248

7.4

Other long-term debt

220,913

222,906

(1,993)

(0.9)

332,167

311,633

283,548

(62,635)

(22.1)

Other liabilities

186,382

206,030

(19,648)

(9.5)

172,473

135,477

159,818

26,564

16.6

Total liabilities

17,060,524

17,180,860

(120,336)

(0.7)

16,213,160

14,067,838

13,783,091

3,277,433

23.8

Total shareholders' equity

2,490,642

2,423,210

67,432

2.8

2,232,126

1,889,775

1,831,232

659,410

36.0

Total liabilities and shareholders' equity

$ 19,551,166

$ 19,604,070

(52,904)

(0.3)

$ 18,445,286

$ 15,957,613

$ 15,614,323

3,936,843

25.2

(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015.

 

Table 5 - IBERIABANK CORPORATION

TOTAL LOANS AND ASSET QUALITY DATA

(Dollars in thousands)

Linked Qtr Change

Year/Year Change

LOANS

12/31/2015

9/30/2015

$

%

6/30/2015

3/31/2015

12/31/2014

$

%

Commercial loans:

Real estate

$   6,073,511

$   5,979,751

93,760

1.6

$   5,853,751

$   5,122,946

$   4,361,779

1,711,732

39.2

Commercial and Industrial

3,444,578

3,302,971

141,607

4.3

3,216,906

2,967,306

2,571,695

872,883

33.9

Energy-related (Real Estate and Commercial and Industrial)(1)

680,766

719,456

(38,690)

(5.4)

787,568

819,411

880,608

(199,842)

(22.7)

Total commercial loans

10,198,855

10,002,178

196,677

2.0

9,858,225

8,909,663

7,814,082

2,384,773

30.5

Residential mortgage loans

1,195,319

1,189,941

5,378

0.5

1,169,608

1,164,286

1,080,297

115,022

10.6

Consumer loans:

Home equity

2,066,167

2,015,687

50,480

2.5

1,971,073

1,858,088

1,601,105

465,062

29.0

Indirect automobile

246,298

281,649

(35,351)

(12.6)

322,958

367,349

397,158

(150,860)

(38.0)

Automobile

169,571

172,947

(3,376)

(2.0)

173,924

160,518

149,901

19,670

13.1

Credit card

77,843

77,284

559

0.7

74,314

72,711

73,393

4,450

6.1

Other

373,375

377,333

(3,958)

(1.0)

380,461

340,846

325,108

48,267

14.8

Total consumer loans

2,933,254

2,924,900

8,354

0.3

2,922,730

2,799,512

2,546,665

386,589

15.2

Total loans

$ 14,327,428

$ 14,117,019

210,409

1.5

$ 13,950,563

$ 12,873,461

$ 11,441,044

2,886,384

25.2

Allowance for loan losses

$    (138,378)

$    (130,254)

(8,124)

6.2

$    (128,149)

$    (128,313)

$    (130,131)

(8,247)

6.3

Loans, net

14,189,050

13,986,765

202,285

1.4

13,822,414

12,745,148

11,310,913

2,878,137

25.4

Reserve for unfunded commitments

(14,145)

(14,525)

380

(2.6)

(13,244)

(12,849)

(11,801)

(2,344)

19.9

Allowance for credit losses

(152,523)

(144,779)

(7,744)

5.3

(141,393)

(141,162)

(141,932)

(10,591)

7.5

ASSET QUALITY DATA (2)

Non-accrual loans

$      154,425

$      165,022

(10,597)

(6.4)

$      192,385

$      195,371

$      169,686

(15,261)

(9.0)

Other real estate owned and foreclosed assets

34,131

40,450

(6,319)

(15.6)

49,929

53,194

53,947

(19,816)

(36.7)

Accruing loans more than 90 days past due

1,970

2,994

(1,024)

(34.2)

4,607

5,642

1,708

262

15.3

Total non-performing assets

$      190,526

$      208,466

(17,940)

(8.6)

$      246,921

$      254,207

$      225,341

(34,815)

(15.4)

Loans 30-89 days past due

$        35,579

$        25,306

10,273

40.6

$        39,005

$        32,835

$        51,141

(15,562)

(30.4)

Non-performing assets to total assets

0.98 %

1.07 %

1.28 %

1.41 %

1.43 %

Non-performing assets to total loans and OREO

1.33

1.47

1.76

1.97

1.96

Allowance for loan losses to non-performing loans (3)

88.5

77.5

65.1

63.8

75.9

Allowance for loan losses to non-performing assets

72.6

62.5

51.9

50.5

57.7

Allowance for loan losses to total loans

0.97

0.92

0.92

1.00

1.14

Quarter-to-date charge-offs

$          4,277

$          5,245

(968)

(18.5)

$          4,808

$          2,972

$          3,413

864

25.3

Quarter-to-date recoveries

(1,358)

(2,790)

1,432

(51.3)

(1,034)

(1,237)

(1,658)

300

(18.1)

Quarter-to-date net charge-offs

$          2,919

$          2,455

464

18.9

$          3,774

$          1,735

$          1,755

1,164

66.3

Net charge-offs to average loans (annualized)

0.08 %

0.07 %

0.11 %

0.06 %

0.06 %

(1)

For purposes of this table, energy-related loans generally include loans with specific NAICS codes that relate to the Oil and Gas E&P, Services or Midstream industries.

(2)

For purposes of this table, non-performing assets include all loans meeting non-performing asset criteria, including assets acquired in FDIC-assisted transactions.

(3)

Non-performing loans consist of non-accruing loans and accruing loans 90 days or more past due.

 

Table 6 - IBERIABANK CORPORATION

LEGACY LOANS AND LEGACY ASSET QUALITY DATA

(Dollars in thousands)

Linked Qtr Change

Year/Year Change

LEGACY LOANS

12/31/2015

9/30/2015

$

%

6/30/2015

3/31/2015

12/31/2014

$

%

Commercial loans:

Real estate

$   4,504,062

$   4,321,723

182,339

4.2

$   4,105,592

$ 3,845,551

$ 3,676,811

827,251

22.5

Commercial and Industrial

2,952,102

2,779,503

172,599

6.2

2,650,799

2,496,258

2,452,521

499,581

20.4

Energy-related (Real Estate and Commercial and Industrial)

677,177

713,935

(36,758)

(5.1)

782,312

815,281

872,866

(195,689)

(22.4)

Total commercial loans

8,133,341

7,815,161

318,180

4.1

7,538,703

7,157,090

7,002,198

1,131,143

16.2

Residential mortgage loans

694,023

660,543

33,480

5.1

616,497

553,815

527,694

166,329

31.5

Consumer loans:

Home equity

1,575,643

1,488,796

86,847

5.8

1,399,005

1,335,390

1,290,976

284,667

22.1

Indirect automobile

246,214

281,522

(35,308)

(12.5)

322,767

367,077

396,766

(150,552)

(37.9)

Automobile

157,579

159,928

(2,349)

(1.5)

159,778

145,084

134,014

23,565

17.6

Credit card

77,261

76,716

545

0.7

73,726

72,164

72,745

4,516

6.2

Other

306,459

296,592

9,867

3.3

285,077

264,249

244,321

62,138

25.4

Total consumer loans

2,363,156

2,303,554

59,602

2.6

2,240,353

2,183,964

2,138,822

224,334

10.5

Total loans

$ 11,190,520

$ 10,779,258

411,262

3.8

$ 10,395,553

$ 9,894,869

$ 9,668,714

1,521,806

15.7

Allowance for loan losses

$      (93,808)

$      (86,400)

(7,408)

8.6

$      (83,723)

$    (78,773)

$    (76,174)

(17,634)

23.1

Loans, net

11,096,712

10,692,858

403,854

3.8

10,311,830

9,816,096

9,592,540

1,504,172

15.7

Reserve for unfunded commitments

(14,145)

(14,525)

380

(2.6)

(13,244)

(12,849)

(11,801)

(2,344)

19.9

Allowance for credit losses

(107,953)

(100,925)

(7,028)

7.0

(96,967)

(91,622)

(87,975)

(19,978)

22.7

ASSET QUALITY DATA (2)

Non-accrual loans

$        50,928

$        51,274

(346)

(0.7)

$        62,739

$      60,064

$      34,970

15,958

45.6

Other real estate owned and foreclosed assets

16,491

17,062

(571)

(3.3)

20,028

21,654

21,244

(4,753)

(22.4)

Accruing loans more than 90 days past due

624

1,521

(897)

(59.0)

3,584

239

754

(130)

(17.2)

Total non-performing assets

$        68,043

$        69,857

(1,814)

(2.6)

$        86,351

$      81,957

$      56,968

11,075

19.4

Loans 30-89 days past due

$        20,109

$        15,718

4,391

27.9

$        14,985

$      17,606

$      29,567

(9,458)

(32.0)

Non-performing assets to total assets

0.42 %

0.43 %

0.55 %

0.55 %

0.41 %

Non-performing assets to total loans and OREO

0.61

0.65

0.83

0.83

0.59

Allowance for loan losses to non-performing loans (3)

182.0

163.7

126.2

130.6

213.2

Allowance for loan losses to non-performing assets

137.9

123.7

97.0

96.1

133.7

Allowance for loan losses to total loans

0.84

0.80

0.81

0.80

0.79

Quarter-to-date charge-offs

$          3,705

$          4,958

(1,253)

(25.3)

$          4,446

$        2,669

$        3,070

635

20.7

Quarter-to-date recoveries

(1,145)

(2,524)

1,379

(54.6)

(941)

(1,091)

(1,532)

387

(25.3)

Quarter-to-date net charge-offs

$          2,560

$          2,434

126

5.2

$          3,505

$        1,578

$        1,538

1,022

66.4

Net charge-offs to average loans (annualized)

0.09 %

0.09 %

0.14 %

0.06 %

0.06 %

(1)

For purposes of this table, energy-related loans generally include loans with specific NAICS codes that relate to the Oil and Gas E&P, Services or Midstream industries.

(2)

For purposes of this table, non-performing assets include all loans meeting non-performing asset criteria, including assets acquired in FDIC-assisted transactions.

(3)

Non-performing loans consist of non-accruing loans and accruing loans 90 days or more past due.

 

Table 7 - IBERIABANK CORPORATION

ACQUIRED LOANS AND ACQUIRED ASSET QUALITY DATA

(Dollars in thousands)

Linked Qtr Change

Year/Year Change

ACQUIRED LOANS(1)

12/31/2015

9/30/2015

$

%

6/30/2015

3/31/2015

12/31/2014

$

%

Commercial loans:

Real estate

$ 1,569,449

$ 1,658,028

(88,579)

(5.3)

$ 1,748,159

$ 1,277,395

$    684,968

884,481

129.1

Commercial and Industrial

492,476

523,468

(30,992)

(5.9)

566,107

471,048

119,174

373,302

313.2

Energy-related (Real Estate and Commercial and Industrial) (2)

3,589

5,521

(1,932)

(35.0)

5,256

4,130

7,742

(4,153)

(53.6)

Total commercial loans

2,065,514

2,187,017

(121,503)

(5.6)

2,319,522

1,752,573

811,884

1,253,630

154.4

Residential mortgage loans

501,296

529,398

(28,102)

(5.3)

553,111

610,471

552,603

(51,307)

(9.3)

Consumer loans:

Home equity

490,524

526,891

(36,367)

(6.9)

572,068

522,698

310,129

180,395

58.2

Indirect automobile

84

127

(43)

(33.9)

191

272

392

(308)

(78.6)

Automobile

11,992

13,019

(1,027)

(7.9)

14,146

15,434

15,887

(3,895)

(24.5)

Credit card

582

568

14

2.5

588

547

648

(66)

(10.2)

Other

66,916

80,741

(13,825)

(17.1)

95,384

76,597

80,787

(13,871)

(17.2)

Total consumer loans

570,098

621,346

(51,248)

(8.2)

682,377

615,548

407,843

162,255

39.8

Total loans

$ 3,136,908

$ 3,337,761

(200,853)

(6.0)

$ 3,555,010

$ 2,978,592

$ 1,772,330

1,364,578

77.0

Allowance for loan losses

$    (44,570)

$   (43,854)

(716)

1.6

$   (44,426)

$   (49,540)

$   (53,957)

9,387

(17.4)

Loans, net

3,092,338

3,293,907

(201,569)

(6.1)

3,510,584

2,929,052

1,718,373

1,373,965

80.0

ACQUIRED ASSET QUALITY DATA (1)

Non-accrual loans

$    103,497

$    113,748

(10,251)

(9.0)

$    129,646

$    135,307

$    134,716

(31,219)

(23.2)

Other real estate owned and foreclosed assets

17,640

23,388

(5,748)

(24.6)

29,901

31,540

32,703

(15,063)

(46.1)

Accruing loans more than 90 days past due

1,346

1,473

(127)

(8.6)

1,023

5,403

954

392

41.1

Total non-performing assets

$    122,483

$    138,609

(16,126)

(11.6)

$    160,570

$    172,250

$    168,373

(45,890)

(27.3)

Loans 30-89 days past due

$      15,470

$        9,588

5,882

61.3

$      24,020

$      15,229

$      21,574

(6,104)

(28.3)

Non-performing assets to total assets

3.84 %

4.07 %

4.42 %

5.64 %

9.11 %

Non-performing assets to total loans and OREO

3.88

4.12

4.48

5.72

9.33

Allowance for loan losses to non-performing loans (3)

42.5

38.1

34.0

35.2

39.8

Allowance for loan losses to non-performing assets

36.4

31.6

27.7

28.8

32.1

Allowance for loan losses to total loans

1.42

1.31

1.25

1.66

3.04

Quarter-to-date charge-offs

$          572

$          287

285

99.3

$          362

$          303

$          343

229

66.8

Quarter-to-date recoveries

(213)

(266)

53

(19.9)

(93)

(146)

(126)

(87)

69.0

Quarter-to-date net charge-offs

$          359

$            21

338

1,609.5

$          269

$          157

$          217

142

65.4

Net charge-offs to average loans (annualized)

0.04 %

0.00%

0.03 %

0.03 %

0.05 %

(1)

For purposes of this table, acquired loans and acquired non-performing assets are presented only. Non-performing assets include all loans meeting non-performing asset criteria.

(2)

For purposes of this table, energy-related loans generally include loans with specific NAICS codes that relate to the Oil and Gas E&P, Services or Midstream industries.

(3)

Non-performing loans consist of non-accruing loans and accruing loans 90 days or more past due.

 

TABLE 8 - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)

For the Three Months Ended

12/31/2015

9/30/2015

Basis Point Change

ASSETS

Average Balance

Interest Income/Expense

Yield/Rate

Average Balance

Interest Income/Expense

Yield/Rate

Yield/Rate

Earning assets:

Commercial loans

$ 10,062,680

$          114,153

4.50 %

$   9,915,593

$          110,282

4.41 %

9

Residential mortgage loans

1,193,488

12,819

4.30

1,180,725

13,156

4.46

(16)

Consumer loans

2,928,982

36,553

4.95

2,913,283

36,477

4.97

(2)

Total loans

14,185,150

163,525

4.57

14,009,601

159,915

4.53

4

Loss share receivable

41,205

(4,490)

(42.63)

47,190

(5,600)

(46.43)

380

Total loans and loss share receivable

14,226,355

159,035

4.44

14,056,791

154,315

4.36

8

Mortgage loans held for sale

169,616

1,422

3.35

200,895

1,847

3.68

(33)

Investment securities (2)

2,901,388

15,149

2.21

2,697,617

13,729

2.16

5

Other earning assets

390,571

1,045

1.06

756,277

1,186

0.62

44

Total earning assets

17,687,930

176,651

3.99

17,711,580

171,077

3.86

13

Allowance for loan losses

(135,209)

(130,367)

Non-earning assets

1,998,445

2,022,857

Total assets

$ 19,551,166

$ 19,604,070

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:

NOW accounts

$   2,720,128

1,861

0.27

$   2,655,069

1,725

0.26

1

Savings and money market accounts

6,899,090

6,172

0.35

7,104,789

6,459

0.36

(1)

Certificates of deposit

2,213,557

4,727

0.85

2,343,794

5,040

0.85

Total interest-bearing deposits(3)

11,832,775

12,760

0.43

12,103,652

13,224

0.43

Short-term borrowings

240,365

98

0.16

262,250

116

0.17

(1)

Long-term debt

341,022

2,633

3.02

343,016

2,620

2.99

3

Total interest-bearing liabilities

12,414,162

15,491

0.49

12,708,918

15,960

0.50

(1)

Non-interest-bearing deposits

4,459,980

4,265,912

Non-interest-bearing liabilities

186,382

206,030

Total liabilities

17,060,524

17,180,860

Total shareholders' equity

2,490,642

2,423,210

Total liabilities and shareholders' equity

$ 19,551,166

$ 19,604,070

Net interest income/Net interest spread

$          161,160

3.50 %

$          155,117

3.36 %

14

Tax-equivalent benefit

2,384

0.05

2,185

0.05

Net interest income (TE)/Net interest margin (TE) (1)

$          163,544

3.64 %

$          157,302

3.50 %

14

(1)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%.

(2)

Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting.

(3)

Total deposit costs for the three months ended December 31, 2015 and September 30, 2015 total 0.31% and 0.32%, respectively.

 

TABLE 8 Continued - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)

For the Three Months Ended

6/30/2015

3/31/2015

12/31/2014

ASSETS

Average Balance

Interest Income/Expense

Yield/Rate

Average Balance

Interest Income/Expense

Yield/Rate

Average Balance

Interest Income/Expense

Yield/Rate

Earning assets:

Commercial loans

$   9,277,141

$         103,272

4.46 %

$   7,882,782

$           83,645

4.31 %

$   7,656,992

$           89,574

4.65 %

Residential mortgage loans

1,187,166

14,379

4.84

1,099,518

13,594

4.95

1,069,555

13,094

4.90

Consumer loans

2,833,417

35,684

5.05

2,581,646

32,952

5.18

2,545,205

33,994

5.30

Total loans

13,297,724

153,335

4.62

11,563,946

130,191

4.56

11,271,752

136,662

4.82

Loss share receivable

55,751

(7,398)

(52.50)

66,165

(6,013)

(36.35)

85,733

(13,224)

(60.36)

Total loans and loss share receivable

13,353,475

145,937

4.38

11,630,111

124,178

4.32

11,357,485

123,438

4.32

Mortgage loans held for sale

202,691

1,380

2.72

133,304

1,515

4.55

121,439

1,200

3.95

Investment securities (2)

2,469,050

12,191

2.08

2,307,525

12,097

2.22

2,234,235

11,766

2.24

Other earning assets

663,071

1,037

0.63

402,499

795

0.80

431,603

872

0.80

Total earning assets

16,688,287

160,545

3.87

14,473,439

138,585

3.90

14,144,762

137,276

3.88

Allowance for loan losses

(129,069)

(128,519)

(134,177)

Non-earning assets

1,886,068

1,612,693

1,603,738

Total assets

$ 18,445,286

$ 15,957,613

$ 15,614,323

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:

NOW accounts

$   2,639,140

1,765

0.27

$   2,464,760

1,552

0.26

$   2,271,836

1,526

0.27

Savings and money market accounts

6,228,052

5,058

0.33

4,834,244

3,375

0.28

4,908,247

3,694

0.30

Certificates of deposit

2,331,537

4,959

0.85

2,150,447

4,411

0.83

2,105,623

4,272

0.80

Total interest-bearing deposits(3)

11,198,729

11,782

0.42

9,449,451

9,338

0.40

9,285,706

9,492

0.41

Short-term borrowings

461,742

220

0.19

747,058

363

0.19

713,384

342

0.19

Long-term debt

446,748

2,866

2.54

423,495

3,080

2.91

395,410

2,762

2.73

Total interest-bearing liabilities

12,107,219

14,868

0.49

10,620,004

12,781

0.49

10,394,500

12,596

0.48

Non-interest-bearing deposits

3,933,468

3,312,357

3,228,773

Non-interest-bearing liabilities

172,473

135,477

159,818

Total liabilities

16,213,160

14,067,838

13,783,091

Total shareholders' equity

2,232,126

1,889,775

1,831,232

$ 18,445,286

$ 15,957,613

$ 15,614,323

Net interest income/Net interest spread

$         145,677

3.38 %

$         125,804

3.41 %

$         124,680

3.40 %

Tax-equivalent benefit

1,996

0.05

2,040

0.06

2,055

0.06

Net interest income (TE)/Net interest margin (TE) (1)

$         147,673

3.52 %

$         127,844

3.54 %

$         126,735

3.53 %

(1)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%.

(2)

Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting.

(3)

Total deposit costs for the three months ended June 30, 2015, March 31, 2015 and December 31, 2014 total 0.31%, 0.30% and 0.30% for each three month period.

 

TABLE 9 - IBERIABANK CORPORATION

YEAR-TO-DATE AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)

For the Years Ended

12/31/2015

12/31/2014

Basis Point Change

ASSETS

Average Balance

Interest Income/Expense

Yield/Rate

Average Balance

Interest Income/Expense

Yield/Rate

Yield/Rate

Earning assets:

Commercial loans

$   9,292,251

$          411,351

4.42 %

$   7,284,247

$          359,801

4.95 %

(53)

Residential mortgage loans

1,165,524

53,948

4.63

869,510

44,563

5.13

(50)

Consumer loans

2,815,554

141,667

5.03

2,310,339

122,342

5.30

(27)

Total loans

13,273,329

606,966

4.57

10,464,096

526,706

5.04

(47)

Loss share receivable

52,494

(23,500)

(44.15)

120,567

(74,617)

(61.04)

1,689

Total loans and loss share receivable

13,325,823

583,466

4.38

10,584,663

452,089

4.29

9

Mortgage loans held for sale

176,793

6,164

3.49

130,425

5,153

3.95

(46)

Investment securities (2)

2,595,806

53,165

2.17

2,148,963

44,677

2.23

(6)

Other earning assets

553,629

4,063

0.73

371,490

2,896

0.78

(5)

Total earning assets

16,652,051

646,858

3.90

13,235,541

504,815

3.85

5

Allowance for loan losses

(130,808)

(134,830)

Non-earning assets

1,881,463

1,531,283

Total assets

$ 18,402,706

$ 14,631,994

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:

NOW accounts

$   2,620,570

6,903

0.26

$   2,240,137

6,006

0.27

(1)

Savings and money market accounts

6,274,498

21,063

0.34

4,616,026

12,802

0.28

6

Certificates of deposit

2,260,237

19,137

0.85

1,889,858

14,282

0.76

9

Total interest-bearing deposits(3)

11,155,305

47,103

0.42

8,746,021

33,090

0.38

4

Short-term borrowings

426,011

797

0.18

782,033

1,364

0.17

1

Long-term debt

388,220

11,200

2.85

335,211

10,250

3.02

(17)

Total interest-bearing liabilities

11,969,536

59,100

0.49

9,863,265

44,704

0.45

4

Non-interest-bearing deposits

3,996,821

2,916,509

Non-interest-bearing liabilities

175,315

144,861

Total liabilities

16,141,672

12,924,635

Total shareholders' equity

2,261,034

1,707,359

$ 18,402,706

$ 14,631,994

Net interest income/Net interest spread

$          587,758

3.41 %

$          460,111

3.40 %

1

Tax-equivalent benefit

8,604

0.05

8,609

0.06

(1)

Net interest income (TE)/Net interest margin (TE) (1)

$          596,362

3.55 %

$          468,720

3.51 %

4

(1)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%.

(2)

Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting.

(3)

Total deposit costs for the years ended December 31, 2015 and 2014 total 0.31% and 0.28%, respectively.

 

Table 10 - IBERIABANK CORPORATION

LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS

(Dollars in millions)

For the Three Months Ended

12/31/2015

9/30/2015

6/30/2015

3/31/2015

12/31/2014

AS REPORTED (US GAAP)

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Legacy loans, net

$   109

$ 10,949

3.92 %

$   105

$ 10,571

3.90 %

$     99

$ 10,147

3.88 %

$     94

$   9,734

3.90 %

$     95

$   9,439

3.94 %

Acquired loans (1)

50

3,277

5.97 %

49

3,486

5.59 %

47

3,206

5.82 %

30

1,896

6.34 %

29

1,919

5.97 %

Total loans

$   159

$ 14,226

4.44 %

$   154

$ 14,057

4.36 %

$   146

$ 13,353

4.38 %

$   124

$ 11,630

4.32 %

$   124

$ 11,358

4.32 %

12/31/2015

9/30/2015

6/30/2015

3/31/2015

12/31/2014

ADJUSTMENTS

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Legacy loans, net

$     —

$        —

—%

$     —

$        —

—%

$     —

$        —

—%

$     —

$        —

—%

$     —

$        —

—%

Acquired loans (1)

(11)

87

(1.41)%

(8)

92

(0.90)%

(9)

85

(1.23)%

(9)

67

(2.00)%

(6)

55

(1.38)%

Total loans

$   (11)

$        87

(0.33)%

$     (8)

$        92

(0.24)%

$     (9)

$        85

(0.30)%

$     (9)

$        67

(0.33)%

$     (6)

$        55

(0.23)%

12/31/2015

9/30/2015

6/30/2015

3/31/2015

12/31/2014

AS ADJUSTED (CASH YIELD, NON-GAAP)

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Legacy loans, net

$   109

$ 10,949

3.92 %

$   105

$ 10,571

3.90 %

$     99

$ 10,147

3.88 %

$     94

$   9,734

3.90 %

$     95

$   9,439

3.94 %

Acquired loans (1)

39

3,364

4.56 %

41

3,578

4.69 %

38

3,291

4.58 %

21

1,963

4.28 %

23

1,974

4.59 %

Total loans

$   148

$ 14,313

4.11 %

$   146

$ 14,149

4.12 %

$   137

$ 13,438

4.08 %

$   115

$ 11,697

3.99 %

$   118

$ 11,413

4.09 %

(1)

Acquired loans include the impact of the FDIC Indemnification Asset.

 

Table 11 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)

For the Three Months Ended

12/31/2015

9/30/2015

6/30/2015

Pre-tax

After-tax (2)

Per share (3)

Pre-tax

After-tax (2)

Per share (3)

Pre-tax

After-tax (2)

Per share (3)

Net income (GAAP)

$   62,977

$     44,407

$          1.08

$   62,565

$     42,475

$          1.03

$ 45,191

$     30,836

$          0.79

Non-interest income adjustments:

Gain on sale of investments and other non-interest income

(157)

(102)

-

(2,221)

(1,444)

(0.04)

(1,266)

(823)

(0.02)

Non-interest expense adjustments:

Merger-related expenses

(166)

(108)

-

2,212

1,438

0.04

12,732

8,392

0.22

Severance expenses

1,842

1,197

0.03

304

198

-

406

264

0.01

Impairment of long-lived assets, net of (gain) loss on sale

3,396

2,207

0.05

1,713

1,113

0.03

1,571

1,021

0.03

Other non-operating non-interest expense

(208)

(135)

-

242

157

-

2,050

1,333

0.03

Total non-interest expense adjustments

4,864

3,161

0.08

4,471

2,906

0.07

16,759

11,010

0.29

Income tax benefits

-

(2,041)

(0.05)

-

-

-

-

-

-

Operating earnings (non-GAAP)

67,684

45,425

1.11

64,815

43,937

1.07

60,684

41,023

1.05

Provision for loan losses

11,711

7,612

0.19

5,062

3,291

0.08

8,790

5,713

0.15

Pre-provision operating earnings (non-GAAP)

$   79,395

$     53,037

$          1.30

$   69,877

$     47,228

$          1.15

$ 69,474

$     46,736

$          1.20

For the Three Months Ended

3/31/2015

12/31/2014 (1)

Pre-tax

After-tax (2)

Per share (3)

Pre-tax

After-tax(2)

Per share (3)

Net income (GAAP)

$   36,205

$     25,126

$          0.75

$   46,122

$     35,936

$          1.07

Non-interest income adjustments:

Gain on sale of investments and other non-interest income

(389)

(252)

(0.01)

(374)

(243)

(0.01)

Non-interest expense adjustments:

Merger-related expenses

9,296

6,139

0.18

1,955

1,496

0.04

Severance expenses

41

27

-

139

91

-

Impairment of long-lived assets, net of (gain) loss on sale

579

376

0.01

1,078

701

0.02

Other non-operating non-interest expense

450

292

0.01

2

1

-

Total non-interest expense adjustments

10,366

6,834

0.20

3,174

2,289

0.07

Income tax benefits

-

-

-

-

(2,959)

(0.09)

Operating earnings (non-GAAP)

46,182

31,708

0.95

48,922

35,023

1.05

Provision for loan losses

5,345

3,475

0.10

6,495

4,222

0.11

Pre-provision operating earnings (non-GAAP)

$   51,527

$     35,183

$          1.05

$   55,417

$     39,245

$          1.17

For the Years Ended

12/31/2015

12/31/2014 (1)

Pre-tax

After-tax (2)

Per share (3)

Pre-tax

After-tax (2)

Per share (3)

Net income (GAAP)

$ 206,938

$   142,844

$          3.68

$ 141,065

$   105,382

$          3.30

Non-interest income adjustments:

Gain on sale of investments and other non-interest income

(4,033)

(2,621)

(0.07)

(2,757)

(2,319)

(0.07)

Non-interest expense adjustments:

Merger-related expenses

24,074

15,861

0.41

15,093

10,104

0.32

Severance expenses

2,593

1,686

0.04

6,951

4,518

0.14

Impairment of long-lived assets, net of (gain) loss on sale

7,259

4,717

0.12

7,073

4,597

0.14

Other non-operating non-interest expense

2,534

1,647

0.04

(597)

(388)

(0.01)

Total non-interest expense adjustments

36,460

23,911

0.62

28,520

18,831

0.59

Income tax benefits

(2,041)

(0.05)

(2,959)

(0.09)

Operating earnings (non-GAAP)

239,365

162,093

4.18

166,828

118,935

3.72

Provision for loan losses

30,908

20,090

0.52

19,060

12,389

0.39

Pre-provision operating earnings (non-GAAP)

$ 270,273

$   182,183

$          4.70

$ 185,888

$   131,324

$          4.12

(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015.

(2)

After-tax amounts computed using a marginal tax rate of 35%.

(3)

Diluted per share amounts may not appear to foot due to rounding.

 

Table 12 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)

For the Three Months Ended

12/31/2015

9/30/2015

6/30/2015

3/31/2015

12/31/2014 (1)

Net interest income (GAAP)

$ 161,160

$ 155,117

$ 145,677

$ 125,804

$      124,680

Add: Effect of tax benefit on interest income

2,384

2,185

1,996

2,040

2,055

Net interest income (TE) (Non-GAAP) (2)

163,544

157,302

147,673

127,844

126,735

Non-interest income (GAAP)

52,503

57,478

61,513

48,899

47,072

Add: Effect of tax benefit on non-interest income

590

589

579

588

566

Non-interest income (TE) (Non-GAAP)(2)

53,093

58,067

62,092

49,487

47,638

Taxable equivalent revenues (Non-GAAP) (2)

216,637

215,369

209,765

177,331

174,373

Securities gains and other non-interest income

(157)

(2,221)

(1,266)

(389)

(374)

Taxable equivalent operating revenues (Non-GAAP) (2)

$ 216,480

$ 213,148

$ 208,499

$ 176,942

$      173,999

Total non-interest expense (GAAP)

$ 138,975

$ 144,968

$ 153,209

$ 133,153

$      119,135

Less: Intangible amortization expense

1,795

2,338

2,155

1,523

1,618

Tangible non-interest expense (Non-GAAP) (3)

137,180

142,630

151,054

131,630

117,517

Less: Merger-related expense

(166)

2,212

12,732

9,296

1,955

Severance expense

1,842

304

406

41

139

Loss on sale of long-lived assets, net of impairment

3,396

1,713

1,571

579

1,078

Other non-operating non-interest expense

(208)

242

2,050

450

2

Tangible operating non-interest expense (Non-GAAP) (3)

$ 132,316

$ 138,159

$ 134,295

$ 121,264

$      114,343

Return on average assets (GAAP)

0.90 %

0.86 %

0.67 %

0.64 %

0.91 %

Effect of non-operating revenues and expenses

0.02

0.03

0.22

0.17

(0.02)

Operating return on average assets (Non-GAAP)

0.92 %

0.89 %

0.89 %

0.81 %

0.89 %

Efficiency ratio (GAAP)

65.0 %

68.2 %

73.9 %

76.2 %

69.4 %

Effect of tax benefit related to tax-exempt income

(0.8)

(0.9)

(0.9)

(1.1)

(1.1)

Efficiency ratio (TE) (Non-GAAP) (2)

64.2 %

67.3 %

73.0 %

75.1 %

68.3 %

Effect of amortization of intangibles

(0.8)

(1.1)

(1.0)

(0.9)

(0.9)

Effect of non-operating items

(2.3)

(1.4)

(7.6)

(5.7)

(1.7)

Tangible operating efficiency ratio (TE) (Non-GAAP)(2)(3)

61.1 %

64.8 %

64.4 %

68.5 %

65.7 %

Return on average common equity (GAAP)

7.30 %

7.09 %

5.54 %

5.39 %

7.79 %

Effect of intangibles (3)

3.65

3.73

2.93

2.53

3.67

Effect of non-operating revenues and expenses

0.25

0.36

2.67

2.00

(0.29)

Return on average operating tangible common equity (Non-GAAP)

11.20 %

11.18 %

11.14 %

9.92 %

11.17 %

(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015.

(2)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%.

(3)

Tangible calculations eliminate the effect of goodwill and acquisition-related intangibles and the corresponding amortization expense on a tax-effected basis where applicable.

 

SOURCE IBERIABANK Corporation



RELATED LINKS

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